Energy Bates White is widely recognized for the strength and quality of the

Transmission System Modeling quantitative analyses that we use in business and litigation settings. Our
about bates white experts and academics combine a deep knowledge of state-of-the-art
bates white is a consulting firm offering quantitative methods and regulatory economics with industry expertise to
services in economics, finance, and business provide solutions to complex issues and defend our clients’ interests. We can
strategy to leading law firms, fortune 500 provide the following services:
companies, and government agencies.
bates white has offices in washington, dc, • Determine least-cost generation production and transmission
and san diego, ca
investment strategies
• Forecast transmission system congestion and locational marginal prices
• Assess reliability standards
• Determine the benefits of economic dispatch, “national interest” transmission
corridors, and economic incentives for new transmission system
infrastructure investments
• Simulate large, integrated transmission markets to determine asset value
and performance
• Evaluate impact of dynamic losses on LMP and expected power flows
• Estimate available transfer capability (ATC) for vertically integrated utilities
and independent wholesale generators

HIGHLY SKILLED AND EXPERIENCED TEAM
Our experts apply extensive industry experience, rigorous economic training, and
state-of-the-art analytical capabilities in our assessments of transmission markets.
Our experts have adopted an approach that is recognized by FERC as the standard
for assessing transmission market power and evaluating market-based rate
applications by wholesale electric suppliers. We provide clients with key insights,
unbiased analysis, and expert testimony that allow them to assess market power
issues and make optimal investment and operations decisions.
For more information, contact:
Nicolás Puga, Principal TRANSMISSION SIMULATION ANALYSIS
Bates White, LLC We perform detailed power flow modeling and simulation analysis of
1300 Eye Street, NW, Suite 600
interconnected electricity markets in order to ensure a more efficient
Washington, DC 20005
utilization of generation and transmission resources. Among other models, we
+1 (202) 652-2184
nick.puga@bateswhite.com use PowerWorld Simulator, an interactive power systems simulation package
capable of efficiently solving systems with up to 100,000 buses and an almost
unlimited number of lines—more than in the Eastern Interconnect, Western
www.bateswhite.com/practices/energy.htm Interconnect, and ERCOT systems combined. PowerWorld has over 350 licensed
users in 35 countries, including the Federal Energy Regulatory AVAILABLE TRANSFER Capability ANALYSIS
Commission (FERC), ERCOT, MAIN, the Bonneville Power Inadequate transmission system investment and increased
Administration (BPA), Exelon/ComEd, Progress Energy, the U.S. congestion heighten the importance of accurate, transparent
Department of Energy, the U.S. Department of Justice, several determinations of available transfer capability (ATC) for vertically
state regulatory agencies, and numerous other utilities and integrated utilities and independent wholesale generators.
power marketers. Determining ATC is a complex process that includes specification
of monitored and contingency elements and analysis of network
TRANSMISSION POLICY ANALYSIS response factors. We provide independent assessments of
The Energy Policy Act of 2005 is significantly affecting companies simultaneous import capability (SIC), inter-regional transfer
that own, manage, and use the transmission system. The capability, and control area ATC values, as well as objective
act covers a wide range of issue areas, including reliability evaluation and verification of transmission service requests (TSR),
standards, economic dispatch, a “national interest” transmission system impact studies (SIS), and facility studies.
corridor, economic incentives for new transmission system
infrastructure investments, and regional transmission planning MARKET POWER ANALYSIS
and transmission pricing policies. We apply transmission system We combine extensive knowledge of FERC regulatory proceedings
modeling experience with cost-benefit and regulatory policy with sophisticated analytical tools to deliver rigorous, defensible
analysis, regulatory accounting, and rate-of-return analysis to help market power analysis and testimony. In assessing market
companies make better business decisions. participants’ ability to exercise market power in FERC market-
based rate (MBR) proceedings and utility merger applications,
ASSET VALUATION AND SITING ANALYSIS a lack of consideration of transmission constraints can lead to
We help companies maximize the value of generation and flawed conclusions. To avoid this, we use state-of-the-art power
transmission assets by identifying and assessing the markets that system and transmission modeling tools to integrate patterns of
can most effectively be served by comparing project costs to internal and external transmission constraints into delivered price
market rates. Our forecasts of revenues and costs are based on test (DPT) analysis.
integrated generation dispatch and transmission modeling. This
approach to modeling of generation and transmission markets
helps project developers determine optimal locations for new
infrastructure investment. We understand that the optimum
operating level of a plant can be greatly influenced by local and
regional transmission constraints. Our ability to model large,
integrated transmission markets enables us to assess the impact
of proposed bulk transmission projects on the value of existing
and proposed assets.

CONGESTION AND LMP ANALYSIS
We perform optimal power flow and production simulation
modeling to forecast LMP at any location in the interconnected
transmission system. Our transmission modeling tools assess the
impact of dynamic losses on LMP and expected power flows,
enabling clients to develop FTR hedging strategies. Our modeling
tools also help companies in their valuations of RTO membership
and in the establishment of optimal generation interconnection
points, which maximizes locational revenues. Cost-benefit
analysis of transmission and generating capacity expansion helps
companies relieve transmission constraints.

www.bateswhite.com/practices/energy.htm